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AOL Latin America IPO Priced at $8

August 08, 2000|Associated Press

The initial public offering of America Online Latin America was priced Monday at $8 a share, on the low end of the expected range, reflecting investors' concerns about the company's growth prospects.

The shares were originally slated to come to market last week at a price between $15 and $17. But the IPO was postponed last Tuesday, when price estimates were lowered to $8-$10.

The sale of 25 million shares raised $200 million for the company. The shares are expected to start trading on Nasdaq today under the ticker AOLA.

AOL Latin America is actually a partnership between Dulles, Va.-based AOL and Cisneros Group, a large media group based in Venezuela.

While the Latin American Internet market is growing fast, AOL is a late entry, analysts noted.

At least two other IPOs were priced late Monday, in what's expected to be another big week for new offerings:

* Medicines Co. (MDCO), a Cambridge, Mass.-based biotech firm, priced six million shares at $16 each, at the top of its expected range.

* Active Power (ACPW), an Austin, Texas-based electrical equipment maker, priced eight million shares at $17, above expectations.

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